Quantchabot has detected a new Covered Put trade opportunity for UTZ BRANDS INC (UTZ) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UTZ was recently trading at $14.15 and has an implied volatility of 50.47% for this period. Based on an analysis of the options available for UTZ expiring on 21-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $11.95-$14.23 at expiration. In this scenario, the average linear return for the trade would be 14.89%.
52 week low: UTZ BRANDS INC recently reached a new 52-week low at $13.46. UTZ had traded in the range $14.17-$20.04 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if UTZ maintains its current direction and does not revert back to pricing on the bullish side of $14.15 on 21-Feb-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if UTZ BRANDS INC closes at or below $14.35 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.98% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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